Question: Rice Quantities and Prices price elasticities Equilibrium Before Programs Supply (million cwt) 0.75 189.886 Demand (million cwt) -0.4 189.886 Farm Price ($/cwt) -- 10.00 Consumer
| Rice Quantities and Prices |
price elasticities | Equilibrium Before Programs |
| Supply (million cwt) | 0.75 | 189.886 |
| Demand (million cwt) | -0.4 | 189.886 |
| Farm Price ($/cwt) | -- | 10.00 |
| Consumer price ($/cwt) | -- | 10.00 |
| Target Price ($/cwt) | -- | None |
| Support Price ($/cwt) | -- | None |
| Government Cost (mil $) | -- | None |
Congresswoman Sally doesnt like the policy recommendations of the Secretary, Congressman Salem, Senator City Slicker, or the U.S. Rice Producers Association. She proposes a price loss coverage (PLC) payment program with a reference price of $14.00/cwt and a NR loan rate set at a much lower $2.00/cwt safety net level because she says this program will lower the price to consumers like Congressman Salem proposed marketing loan program but will be cheaper than either the Secretarys or Congressman Salem programs. The Secretary asks you to determine if she is right.
What would be Congresswoman Sally's proposed program cost?
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